Calculate: should I rent or buy?

With interest rates near forty year lows, the decision to rent versus buy becomes difficult. Use this calculator to help determine which makes sense for you at this time.

RENT ASSUMPTIONS

Monthly rent payment

Annual rent rate increases

0%10%

Additional monthly fees, including renter's insurance premium

PURCHASE ASSUMPTIONS

Purchase price of home

Annual appreciation rate

0%10%

Realtor fees and closing costs upon future sale

0%100%

Mortgage amount

Interest rate

0%40%

Number of years

140

Annual homeowner's insurance premium

Estimated annual property taxes

Estimated annual maintenance costs

OTHER ASSUMPTIONS

Years for the comparison

130

Marginal tax bracket

0%75%

If you plan on staying in your home for longer than 24 months it may be time to refinance. After 24 months you would breakeven (recover the closing cost) and save money over your current mortgage situation. Your monthly payment would drop from $514 to $376, putting $138 each month into your own pocket and you could save $49,630 in interest over the life of the loan.

When you're buying a home, mortgage lenders don't look just at your income, assets, and the down payment you have. They look at all of your liabilities and obligations as well, including auto loans, credit card debt, child support, potential property taxes and insurance, and your overall credit rating.

Use our home affordability calculator to determine how much of a mortgage you may be able to obtain.

INCOME AND DEBT OBLIGATIONS

Combined gross annual income

Monthly car payments

Monthly credit card payments

Other monthly obligations (association fees, child support etc.)

NEW LOAN ASSUMPTIONS

Down payment amount

New mortgage interest rate

0%40%

Number of years

1540

Estimated annual property taxes

Annual homeowner's insurance

Front-end ratio

28%36%

Back-end ratio

36%45%

If you plan on staying in your home for longer than 24 months it may be time to refinance. After 24 months you would breakeven (recover the closing cost) and save money over your current mortgage situation. Your monthly payment would drop from $514 to $376, putting $138 each month into your own pocket and you could save $49,630 in interest over the life of the loan.

Where does all the money go? An itemization of your living expenses may help you budget better and plan for future expenses. Use this calculator to help you recall and itemize your living expenses.

Monthly or annual figures?

annual

EXPENSES

Mortgage payment or rent

Other mortgages: ($)

Total all monthly minimum credit card payments

Total monthly income tax deductions

Monthly car payments

Other monthly obligations

Medical, dental, life and disability insurance

Total car insurance, gas, repairs and other transportation expenses

Utilities

Estimated monthly maintenance costs

Food and groceries

Clothing and laundry

Educational expenses

Child care

Entertainment and personal expenses

Miscellaneous expenses and gifts

If you plan on staying in your home for longer than 24 months it may be time to refinance. After 24 months you would breakeven (recover the closing cost) and save money over your current mortgage situation. Your monthly payment would drop from $514 to $376, putting $138 each month into your own pocket and you could save $49,630 in interest over the life of the loan.

Over the last couple of years with interest rates at a 40-year low, many people refinanced their mortgages. Even though rates have crept up over the last couple of months, refinancing may make sense for you. Use our refinance calculator to analyze your situation today!

CURRENT LOAN INFORMATION

Current loan balance

Interest rate

0%10%

Number of years remaining

140

PROPOSED LOAN INFORMATION

Interest rate on new mortgage

0%10%

Number of years

140

Loan origination fee

0%5%

Closing costs

0%5%

Other fees: ($)

If you plan on staying in your home for longer than 24 months it may be time to refinance. After 24 months you would breakeven (recover the closing cost) and save money over your current mortgage situation. Your monthly payment would drop from $514 to $376, putting $138 each month into your own pocket and you could save $49,630 in interest over the life of the loan.